LG Chemical plans to produce batteries for Tesla in Korea

SMM: according to reports, on July 3, a person familiar with the matter said that the market demand for Intezra vehicles has expanded and battery orders have been increased. South Korea's LG Chemical Company began to produce car batteries for it at its local factory in South Korea this year.

"Tesla is selling very well, so Tesla is asking not only LG Chemical, but also other suppliers to increase supply," the person said. Another person familiar with the matter also said that LG Chemical is converting some of South Korea's local production capacity to Tesla batteries, and its factory in Nanjing, China, has begun producing batteries for Tesla.

Tesla runs a battery plant in the United States in a joint venture with Japan's Panasonic, adding LG Chemical and China's Ningde Times to supply its Shanghai plant. A LG Chemical spokesman declined to comment and Tesla had no immediate comment.

On July 2, Tesla announced global car deliveries in the second quarter, far exceeding expectations, successfully shaking off the impact of the suspension of production due to the coronavirus epidemic in the United States. Analysts also expect Chinese car sales to return to strength in the quarter.

LG Chemical shares rose 2.6 per cent on July 3rd. LG Chemical's shares have risen nearly 60 per cent so far in 2020, far outpacing the 2 per cent decline in the broader market.

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